Cho Yoon-Sun, who is the first minister in active service to be arrested in South Korea, is accused of creating the vast catalogue to starve the artists of government subsidies and private investments and place them under state surveillance.
Shortly after her arrest, Cho tendered her resignation which was immediately accepted by Prime Minister Hwang Kyo-Ahn, Yonhap news agency said.
The blacklist of artists in film, theatre, music, fine arts and literature reads like a Who's Who of Seoul's art scene.
Among the names are novelist Han Kang, winner of the 2016 Man Booker International Prize and "Oldboy" film director Park Chan-Wook, who won the Grand Prix at the Cannes film festival in 2004.
